Neo Banks – Bellow In Gark http://bellowingark.org/ Wed, 25 May 2022 15:21:29 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://bellowingark.org/wp-content/uploads/2021/05/default1.png Neo Banks – Bellow In Gark http://bellowingark.org/ 32 32 At Finance Forward, fintech could not avoid talking about Terra https://bellowingark.org/at-finance-forward-fintech-could-not-avoid-talking-about-terra/ Wed, 25 May 2022 15:11:45 +0000 https://bellowingark.org/at-finance-forward-fintech-could-not-avoid-talking-about-terra/ At fintech conferences, payment firms, lenders, and neobanks often take center stage compared to their crypto counterparts. But at Finance Forward in Hamburg last week, a conference organized by the eponymous German fintech publication, the fallout from the collapse of the UST stablecoin hung in the air. Just a week before the conference, the price […]]]>

At fintech conferences, payment firms, lenders, and neobanks often take center stage compared to their crypto counterparts.

But at Finance Forward in Hamburg last week, a conference organized by the eponymous German fintech publication, the fallout from the collapse of the UST stablecoin hung in the air.

Just a week before the conference, the price of Luna (LUNA) and its associated algorithmic stablecoin UST plummeted as the latter broke away from its target price of $1. This led to its native blockchain, Terra, suspend operations twice and early investors like Binance lose a large part of their winnings – or worse, suffer heavy losses.

During a fireside chat, Binance CEO Changpeng Zhao acknowledged that the event was a calamity for the crypto industry, noting that many people suffered financial losses.

“Having shocks like this is a strong reminder for people to learn about real projects, not look for high incentives, and understand that new projects are very risky,” he said. “Stablecoins should be looked at and we should learn more about what is supporting them.”

The conversations The Block has had on the ground with fintech founders exploring crypto products for the first time, however, suggest that opinions remain divided on algorithmic stablecoins.

Kristina Walcker-Mayer, CEO of Nuri, a neobank with a crypto wallet that has nearly 500,000 users, believes the UST crash will help spur innovation, noting that the early days of the internet were also tumultuous.

“Anyone who probably had an interest in [Luna] is already a forerunner and should probably be aware of the risk,” she said. “I would never say there will never be an algorithmic stablecoin – we will see how innovation progresses and what new concepts are coming that will take into consideration the mistakes that have been made.”

The neobank is currently preparing a savings account on DeFi rails, which it says will be the first of its kind to be regulated by BaFin, the German regulator.

Erik Pondzuweit, founder and CEO of Scalable Capital, a neo-broker and robo-advisor that added crypto exposure late last year, was outwardly critical, however.

“I don’t believe in algorithmic stablecoins,” he said. “We’ve seen this before with Constant Proportion Portfolio Insurance (CPPI) in the world of traditional finance, they’re stable until they’re not.

Instead, Pondzuweit favors those backed by dollar reserves such as USDC and USDT and says the company is considering a DeFi product using such a stablecoin for yield generation.

Bitpanda CEO Eric Demuth was also critical, saying he was personally skeptical of new projects with huge incentives such as Terra and Anchor Protocol, which at one point advertised 20% interest rates. Instead, it favors investments in the most well-known cryptocurrencies such as BTC and ETH.

“Personally, I’ve never really invested in [Luna]he said, comparing it to the overhyped altcoins that eventually lost value. “And I don’t really understand the algorithmic stablecoin, which isn’t really a stablecoin because it’s not privately backed.”

The trading platform, however, continues to offer Luna on its platform with a staking option and currently has no plans to remove it. Demuth says they are waiting to see how the token fits in the coming months.

“It’s not a huge scam or something where you have to take it off,” he said. “It’s just a failed system.”

This differs from other fintech companies such as Revolut, which removed the wrapped version of Luna from its crypto offerings due to compliance issues according to founder Nik Storonsky.

However, every fintech founder The Block has spoken to says the effect on the market is a momentary stutter rather than a sign of an entire industry collapsing.

“I think people are more resilient in the crypto market than in the normal stock market,” Scalable’s Pondzuweit said. “It took over a decade for tech stocks to rebound from the dot.com crash, but in the cryptocurrency world, people stick with their investments.”

The founder of the bank as a fintech service Solarisbank Roland Folz says that they will only start offering algorithmic stablecoins on the platform if one has the potential for mass adoption.

“I’m old enough to have seen pretty much everything,” Folz said. “But I’m young enough to be really excited about any of these future projects. Some of them will work out. The majority probably won’t.

© 2022 The Block Crypto, Inc. All rights reserved. This article is provided for informational purposes only. It is not offered or intended for use as legal, tax, investment, financial or other advice.

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By carefully decoding integrated finance, India will be able to achieve financial inclusion in 2022 https://bellowingark.org/by-carefully-decoding-integrated-finance-india-will-be-able-to-achieve-financial-inclusion-in-2022/ Mon, 23 May 2022 14:14:16 +0000 https://bellowingark.org/by-carefully-decoding-integrated-finance-india-will-be-able-to-achieve-financial-inclusion-in-2022/ By decoding integrated finance, India can achieve financial inclusion Due to increased internet penetration, government regulatory and legislative support, and the launch of India Stack, among others, financial services in India have witnessed tremendous development in recent years. The Reserve Bank of India’s Financial Inclusion Index also shows steady progress. However, India’s access to financial […]]]>

By decoding integrated finance, India can achieve financial inclusion

Due to increased internet penetration, government regulatory and legislative support, and the launch of India Stack, among others, financial services in India have witnessed tremendous development in recent years. The Reserve Bank of India’s Financial Inclusion Index also shows steady progress.

However, India’s access to financial services appears to be very limited compared to rich countries and some Asian rivals. India still has a long way to go, with an insurance penetration rate of *4.2%, a personal loan to GDP ratio of **13% and a total market capitalization of around ***US $3.21 trillion (the total US and China market capitalizations are approximately $47.3 trillion and $11.5 trillion, respectively).

This is partly due to the way financial services have traditionally been developed and delivered. Financial services have traditionally been top-down, with an expensive mode of distribution involving multiple branches, high interaction models involving contact centers, relationship managers, etc. As a result, access has been significantly skewed in favor of the wealthy.

This is unquestionably changing, with various banking and neo-banking apps/fintechs challenging the industry with new distribution strategies and a unique focus on certain market groups that have been overlooked or unserved by traditional players. However, the recent introduction of ‘integrated finance’ has the potential to accelerate financial inclusion for millions more Indians in the coming years while creating long-term value for other stakeholders.

To put it simply, Embedded Finance is a concept that allows any non-financial organization (Individuals, Startups, Fintechs, Digital Companies, or Large Companies) to offer financial services (cards, accounts, insurance, credits, investments) to its customers. customers via Embedded Finance. Financial platform.

It used to be that a non-financial company could offer financial services by investing heavily in technology infrastructure and spending a lot of time and effort getting the proper licenses from the authorities. Integrated finance systems would allow companies to skip both processes by providing “plug-and-play” capabilities for large organizations using API stacks and easier-to-use no-code/low-code stacks for organizations. people. These platforms have strong ties to major banks and insurers, enabling them to provide financial services.

The benefits of integrated finance are numerous and we are already seeing applications all over the world. Tesla just started selling car insurance on its checkout page, YouTube now lets users buy products while watching live video, and Google Maps now lets users schedule and pay for parking spots. parking directly from the application..

accelerating digital financial inclusion in southeast asia - cgtn

These examples demonstrate the most important advantage that Integrated financing gives clients: access to the right financial service when they need it most. Embedded Finance, from a platform perspective, offers a chance to generate additional revenue streams through revenue sharing partnerships for the distribution and custody of financial assets. Financial services can be integrated into core customer buying journeys to drive customer engagement, loyalty and lifetime value.

Embedded Finance can help a bank or insurance company minimize customer acquisition and service expenses. In India, an intriguing environment is emerging, with companies employing various tactics to gain momentum in an otherwise fragmented industry. Integrated financial systems have emerged that provide functionality for various combinations of financial products.

Others focus on specialization – giving a single product with a higher degree of customization – while others focus on a varied and comprehensive collection of products. Insurance and integrated payments already have several intriguing applications. Travel companies like MakeMyTrip and Ola have already started offering contextual insurance to their consumers. Customers can now purchase BNPL items directly from e-commerce companies.

Integrated finance offers undeniably interesting possibilities. Early adopters are expected to include large customer-facing digital businesses, e-commerce, and B2B digital brands. Embedded Finance allows creators and influencers to monetize their brands (for example, an influencer providing a brand card to their followers). If applied correctly, Embedded Finance can help any institution with a large mass of users. However, there are difficulties. To begin with, a complicated product such as loans cannot be provided without a thorough consumer survey.

india now leads china in financial inclusion indicators: sbi report |  mint

Enterprises and embedded platforms should figure out how to get the most out of their customer data. Second, for some items, it must be determined whether revenue sharing with banks is feasible. Finally, the capabilities of the Embedded Finance platform, as well as the bank or insurer, will define the extent of customization and personalization.

It is still too early to grasp the full potential of Embedded Finance, but it is undeniably a business opportunity worth exploring. Other no-code/low-code enablers are likely to appear in the future, opening up previously inconceivable use cases. Customers will most likely benefit from companies that integrate their data with Embedded Finance solutions to create value-added services.

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India’s next vehicle to drive financial inclusion https://bellowingark.org/indias-next-vehicle-to-drive-financial-inclusion/ Fri, 20 May 2022 19:40:40 +0000 https://bellowingark.org/indias-next-vehicle-to-drive-financial-inclusion/ Financial services in India have witnessed impressive growth over the past few years due to growing internet penetration, government regulatory and policy support, and the introduction of India Stack, among others. The Financial Inclusion Index developed by the RBI also shows steady progress. However, compared to developed countries and some Asian counterparts, India still seems […]]]>

Financial services in India have witnessed impressive growth over the past few years due to growing internet penetration, government regulatory and policy support, and the introduction of India Stack, among others. The Financial Inclusion Index developed by the RBI also shows steady progress. However, compared to developed countries and some Asian counterparts, India still seems to be severely limited in access to financial services. With an insurance penetration rate of ~4.2%, a retail loan to GDP ratio of ~**13% and a total market capitalization of ~***3.21T US$ (the total market cap of US and China is around US$47.3T and around US$11.5T, respectively), India still has a long way to go.

These circumstances can be partly attributed to the way financial services were traditionally designed and delivered. With an expensive mode of distribution including multiple branches, high-contact models including call centers, relationship managers, etc., financial services have generally been top-down, meaning access has been heavily skewed in favor of the high income group. This is undoubtedly changing with several banking and neo-banking apps/fintechs disrupting the market with new distribution models and a singular focus on specific market segments that have been underserved or unserved by vendors. historical. However, the recent introduction of “integrated finance” could foster financial inclusion for millions of Indians over the next few years and create lasting value for other stakeholders.

To put it simply, Embedded Finance is a concept through which any non-financial organization of varying complexity and digital maturity (Individuals, Startups, Fintechs, Digital Companies or Large Companies) can offer financial services (cards, accounts, insurance, loans, investments) to its clients using an Embedded Finance platform. Previously, for a non-financial organization to offer financial services, it required a significant investment to build the necessary technical infrastructure and a greater investment of time/effort to obtain the necessary licenses from the authorities. Embedded funding platforms would allow organizations to bypass both steps by providing “plug-and-play” functionality using API stacks for large organizations and easier to use no-code/low-code stacks for the details. These platforms form strong partnerships with leading banks and insurers, enabling the provision of financial services.

The benefits of integrated finance are manifold and we are already seeing use cases emerging globally. Some recent notable examples are Tesla selling car insurance on the checkout page, YouTube allowing users to purchase a product directly from a live stream, and Google allowing Map users to book and pay for parking directly from the app. These examples highlight the most crucial benefit that integrated finance provides to clients: having access to the required financial service when it is needed most. From a platform perspective, Embedded Finance offers them the ability to create additional revenue streams through revenue sharing agreements for the distribution and custody of financial products. Businesses can integrate financial services into their customers’ core purchase journeys to drive engagement, loyalty, and increase customer lifetime value. From a bank or insurer’s perspective, Embedded Finance can help reduce customer acquisition and service costs. An exciting landscape is developing in India, with players taking different approaches to achieve scale in an otherwise fragmented market. Several integrated finance platforms have emerged that offer functionality for different combinations of financial products. Some focus on a diverse and comprehensive set of offerings, while others focus on specialization – providing a single product with a higher degree of customization. We are already seeing promising use cases for insurance and integrated payments. Travel industry companies such as MakeMyTrip and Ola have already rolled out contextual insurance products for their customers. E-commerce companies have started offering BNPL products to customers at the point of sale.

The opportunity offered by integrated finance is undoubtedly promising. Large customer-facing digital businesses, digital e-commerce and B2B brands are expected to be early adopters. Creators/influencers have the ability to monetize their brand using Embedded Finance (eg an influencer providing a brand card to their followers). Any institution with a critical mass of users can benefit from integrated finance if used in the right way. However, there are also challenges. To begin with, a complex product like loans cannot be offered before a thorough verification of the client. Businesses and in-vehicle platforms should figure out how to use the customer data available to them in the most useful way. Second, it remains to be seen whether revenue sharing would be possible for certain products with banks. Third, the extent of customization and personalization will ultimately depend on the capabilities of the Embedded Finance platform and the bank or insurer. It is still too early to understand all the possibilities of Embedded Finance; however, this is definitely an opportunity for businesses to explore. Chances are that a surge of new no-code/low-code enablers in the future will propel new use cases that are unimaginable in today’s scenario. Those who would leverage their data with Embedded Finance solutions to provide value-added services to their clients would naturally be winners.



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]]> LendIt Fintech becomes Fintech Nexus https://bellowingark.org/lendit-fintech-becomes-fintech-nexus/ Fri, 20 May 2022 03:51:12 +0000 https://bellowingark.org/lendit-fintech-becomes-fintech-nexus/ After more than a decade of conferences and content, fintech has evolved beyond online lending alternatives: Fintech Nexus is closing the gap. In 2022, the financial ecosystem encompasses more: digital banking and neo-banking, AI underwriting, mobile lending, cybersecurity, retail investing, web3 payments, regulation, investment staking cryptography, and beyond. After the first trickles of innovative startups, […]]]>

After more than a decade of conferences and content, fintech has evolved beyond online lending alternatives: Fintech Nexus is closing the gap.

In 2022, the financial ecosystem encompasses more: digital banking and neo-banking, AI underwriting, mobile lending, cybersecurity, retail investing, web3 payments, regulation, investment staking cryptography, and beyond.

After the first trickles of innovative startups, a roaring rain of new ideas has led to a tidal wave of change in the thin world. LendIt Fintech is now Fintech Nexus to connect traditional finance and the Roaring New Years of Fintech.

Under the brand change, Joy Schwartz, President of Fintech Nexussaid, “Our names finally sum up everything we do, and Nexus means ‘to come together’.”

fintech is what the industry uses to describe the area that LendIt has covered and broadcast for years.

From the Latin verb nectar, or “binding”, Nexus is used here to connect, annex and incorporate the new world with the old as a “hub” for news, in-person content, networking and education.

Traditional finance will soon become the same as fintech, and the Nexus ecosystem will be there as bridge.

Peter Renton, Presidentand the co-founder of Fintech Nexus agreed.

“Fintech Nexus seems more in tune with who we are today. While lending is still an important part of what we focus on, fintech is much more than lending,” he said. “We operate at the center of all fintech, at the crossroads of fintech.”

Nexus is the center of attention and connects a group; he said, “When you put these meanings together and apply them to fintech, you get Fintech Nexus.”

Long time ahead

There were plenty of not-so-subtle hints as it came to those who were paying attention in the audience.

Bo Brusktern, co-founder and CEO at Fintech Nexus, said the rate of change is taking off.

“As banks and fintechs struggled to save the economy through traditional ‘innovations’ during the pandemic, the newcomer – crypto – began to mature beyond the primitive developments we saw in the pre-era. -2020,” Brustkern said. “These innovations are now poised to unleash massive opportunities and threats to the traditional financial ecosystem. So yeah, ‘financial services innovation’ isn’t what it used to be.”

Fintech Nexus has been going digital over the past two years and growing its team, adding digital webinars and fireside chats during pandemic shutdowns. Todd Anderson, chief content officer, said he looks forward to competition in the new space: when worlds collide, the end customer wins.

“I think the biggest beneficiary of merging worlds is the end customer; we will end up with better, faster, cheaper and more personalized products for consumers and small businesses,” he said. “Financial products have always been opaque and expensive; to win customers, all the different players will have to do better in terms of price, speed and transparency. »

The team created Nexus Negotiators, a popular face-to-face networking series. Fintech Nexus has added two industry-leading podcasts featuring top guests from the fintech space and periodic industry white papers with more to come.

Since August, Fintech Nexus has rebuilt the news product from the ground up, doubling readership with an international team of journalists, and added a viral media product with growth Next TikTok to capture younger generations through collaborative influencer marketing.

Nexus Fintech
Each product presented by Fintech Nexus has its own color palette, from the United States to Dealmakers.

Crypto and more

This month, Fintech Nexus launched the Cryptonexus Workshop series, an educational introduction for finance professionals to the crypto space, featuring our Merge London Web3 conference on the horizon in October.

The name change is just in time for the long-awaited Event in the United States next week in New York. The team is preparing for the first major event in two years and, based on ticket sales, it is the biggest party in Fintech Nexus.

Brusktern said that in terms of web3 and crypto, he’s excited that everything is changing.

“At the risk of sounding hyperbolic, I would say that I look forward to the upheaval of everything,” he said. “More pragmatically, I look forward to seeing accredited investor laws become moot. But perhaps the latter is a little too ambitious.

The rebranding doesn’t mean much to outsiders to the organization, but it’s Fintech Nexus’ first step toward years of a cutting-edge ecosystem. The next step is the fun part.

See you soon at a Fintech Nexus event.

Animated Ticker Display: Finance Redefined.  United States |  May 25-26, 2022

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Day 3 of ET India Inc Boardroom 2022 to spotlight fintech initiatives and innovations advancing financial inclusion in India https://bellowingark.org/day-3-of-et-india-inc-boardroom-2022-to-spotlight-fintech-initiatives-and-innovations-advancing-financial-inclusion-in-india/ Wed, 18 May 2022 02:30:00 +0000 https://bellowingark.org/day-3-of-et-india-inc-boardroom-2022-to-spotlight-fintech-initiatives-and-innovations-advancing-financial-inclusion-in-india/ Financial inclusion, rightly seen as a key foundation for achieving the Sustainable Development Goals, has received a lot of attention from governments around the world. India, in particular, has made serious attempts in this direction through initiatives such as the Jan Dhan-Aadhaar-Mobile or JAM. Other factors driving financial inclusion in India include the rise of […]]]>
Financial inclusion, rightly seen as a key foundation for achieving the Sustainable Development Goals, has received a lot of attention from governments around the world. India, in particular, has made serious attempts in this direction through initiatives such as the Jan Dhan-Aadhaar-Mobile or JAM. Other factors driving financial inclusion in India include the rise of new fintech models and innovations, supported by the robust digital infrastructure made possible by India Stack and the widespread internet penetration in the country.

On Day 3 of ET India Inc Boardroom 2022, which is themed around Financial Inclusion, we bring together the innovators, policy makers, experts and business leaders at the forefront of fintech initiatives, innovations and disruptions that are reshaping financial access in India and fostering financial inclusion for people of all income classes in the country.

Watch Thematic Sessions on ET India Inc Boardroom 2022 Here

The ET India Inc Boardroom 2022 event, which is billed as the largest corporate meeting room in India, is set to be a 5-day all-virtual event from May 16 to May 20 for a global audience of over 10,000 attendees. Hosted live from 11 a.m. daily until May 20, ET India Inc 2022 Conference Hall is brought to you in partnership with Associate Partner Commerzify and Knowledge Partner Bain & Co.

ET India Inc Meeting Room Day 3: What to Expect

  • Opening session with Dr. Saurabh Garg, CEO, UIDAI
    India Stack, including Aadhaar and UPI, is powering the fintech revolution in India and empowering startups and innovators to drive financial inclusion for over 1 billion users. On Day 3 of ET India Inc 2022 Conference Hall, Dr. Saurabh Garg, CEO, UIDAI joins Deepshikha Sikarwar, Editor, The Economic Times to share insights on how India Stack including Aadhaar and UPI is changing the financial landscape in India and advancing financial inclusion in India, and how the role of India Stack will further evolve in the future.
  • The Future of Neobanks in India
    The rise of digital-only neobanks in India is helping to bridge the gap between the services offered by traditional banks and the changing needs of today’s savvy customers. In a panel discussion moderated by Rakesh Pozhath, Partner, Bain & Co, Hitarth Saini, Head of Marketing at Freo, and Tarun Bansal, Co-Founder of ZikZuk, will share their thoughts on what the rise of neobanks in India means for the third largest Fintech market and how the future of neobanks in the country will shape.
  • Fintech in Wealth Management
    The rise of fintech startups and the adoption of fintech in India, supported by widespread internet penetration, has led to an increase in the number of new-age investors, thanks to the democratization of wealth management in the country. Shrini Viswanath, Co-Founder, Upstox, Gaurav Rastogi, Founder and CEO, Kuvera, and V.Viswanand, Deputy Managing Director, Max Life Insurance, with Ramganesh Iyer, Partner, Bain & Co.
  • Customer experience in financial services
    While physical reach in terms of the branch and agent network has historically been the basis of competition in financial services, customer experience is increasingly becoming the space where the battle for customer ownership takes place. Joining Rakesh Pozhath, Partner, Bain & Co to share ideas on creating a culture of customer obsession to deliver a differentiated customer experience.
  • Fintech and innovation in credit
    Fintech innovations have played a key role in restructuring the lending ecosystem, paving the way for innovative solutions that meet the needs of a wide range of customers, especially for retail customers and MSMEs. At ET India Inc Boardroom 2022, E, CEO, KreditBee, Naveen Kukreja, CEO and Co-Founder, Paisabazaar, Vasant Sridhar, Co-Founder and CSO, OfBusiness, and Manish Kumar, Founder and CEO, Kredx, join Saurabh Trehan, Partner , Bain & Company in a panel discussion to discuss fintech trends and lending innovations, and the way forward.
  • Closing session with Harish Natarajan of the World Bank on the link between financial inclusion and poverty reduction and prosperity
    In the final session of Day 3 of the ET India Inc 2022 Meeting Room, Harish Natarajan, Senior Financial Sector Specialist, Finance, Competitiveness and Innovation, World Bank, joins Sunny Verma, Deputy Editor, ET Prime, in a conversation to dig deeper into the need for digital financial inclusion and its impact on poverty reduction and prosperity as well as financial independence and long-term economic growth.

Watch Thematic Sessions on ET India Inc Boardroom 2022 Here

The five-day ET India Inc Boardroom event kicked off on Monday, May 16. Each of the five days is focused on a theme, just as the third day is devoted to conversations centered on the topic of financial inclusion. Day 1 focused on economics and day 2 on ESG. The next two days will include deliberations on digital transformation and automation on May 19, and on startups and entrepreneurship on May 20.

To know more about the ET India Inc Boardroom 2022 event, visit the website here.

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balance the regulatory risk of cloud concentration with the reward of innovation https://bellowingark.org/balance-the-regulatory-risk-of-cloud-concentration-with-the-reward-of-innovation/ Mon, 16 May 2022 08:27:16 +0000 https://bellowingark.org/balance-the-regulatory-risk-of-cloud-concentration-with-the-reward-of-innovation/ Regardless of business size and composition, most financial institutions have realized how cloud and multi-cloud IT services can benefit them. There are cost advantages in terms of scale, deployment of new services and innovation. There are security and resiliency benefits that can be difficult and expensive to replicate on-premises, especially for smaller institutions trying to […]]]>

Regardless of business size and composition, most financial institutions have realized how cloud and multi-cloud IT services can benefit them. There are cost advantages in terms of scale, deployment of new services and innovation. There are security and resiliency benefits that can be difficult and expensive to replicate on-premises, especially for smaller institutions trying to keep pace with rapidly changing standards. And there is geographic access to new markets – from China to Canada – that require the deployment of local systems in the country under new sovereignty laws.

However, as the industry continues to embrace cloud services, regulators are increasingly aware of the challenges associated with cloud computing, particularly those that could expose financial institutions to systemic risks that could compromise system stability. financial. The Financial Stability Board (FSB) and the European Banking Authority have urged regulators around the world to review their supervisory frameworks to ensure that different types of cloud computing activities are fully considered in the guidelines for industry.

At the same time, public cloud provider outages have refuted the “never fail” paradigm, and there are growing calls for increased due diligence regarding cybersecurity risks. This causes regulators to also focus on cloud co-ordination risks due to the potential peril created when the technology that underpins global financial services relies on so few large cloud service providers.

So how do financial institutions balance the risk versus the reward of the cloud?

Understand the risk

The concern about infrastructure concentration and consolidation is twofold. The first is the systemic risk of having too many global banking services concentrated on so few public cloud platforms. Historically, this problem did not exist because each bank operated its own on-premises infrastructure. Failure in a data center has always been limited to a single player in the market.

Second, the vulnerability of individual institutions, including many smaller institutions, that outsource critical banking infrastructure and services to a few solution providers. These software-as-a-service “hyperscalers” also tend to run on a single cloud platform, creating cascading problems across thousands of institutions in the event of an outage.

In either case, performance, availability, and security concerns motivate regulators who fear that a provider outage, caused internally or by external bad actors, could cripple the financial systems under their jurisdiction.

For financial services companies, the stakes of service disruption at a single cloud service provider (CSP) increase exponentially as they begin to run more of their critical functions in the public cloud.

So far, regulators have offered financial institutions warnings and guidance rather than enacting new regulations, although they are increasingly working to ensure the industry considers plans, such as “cloud exit strategies”, to mitigate the risk of service disruptions and their repercussions. effects on the entire financial system.

The FSB first raised official public concern on cloud concentration risk in an advisory published in 2019, and has since sought input from industry and the public to inform a policy approach. However, the authorities are currently studying the extension of the regulations, which could mean action as early as 2022. The European Commission has published a legislative proposal on Digital operational resilience aimed at harmonizing existing digital governance rules in financial services, including testing, information sharing and information risk management standards. The European Securities and Markets Authority warned in September 2021 of the risks of “high concentration” among cloud computing service providers, suggesting that “requirements may need to be imposed” to ensure business and industry resilience. whole system.

Similarly, the Bank of England’s Financial Policy Committee said he believes that additional measures are necessary “to mitigate risks to financial stability arising from the concentration in the provision of certain third-party services.” These measures could include designating certain third-party service providers as “critical”, introducing new oversight of public cloud providers; setting resilience standards; and regular resilience testing. They also explore controls over employment and contractors, much like energy and utility companies do today.

To get ahead of regulators, steps must be taken to address the underlying issues.

From hybrid to multicloud

Given the existing banking ecosystem, full cloud adoption is extremely rare. While they wish they could act as challengers and neo-banks, many of the largest and most tech-advanced banks and financial services companies have embraced a hybrid cloud architecture – connecting data centers across site to cloud-based services – as the backbone of an overall business strategy. Smaller regional and national institutions, while not officially adopting a cloud-centric mindset, are beginning to explore the benefits of cloud services by working with cloud-based SaaS providers through their ISVs and service integrators. existing systems.

In these scenarios, some functions are performed in on-premises legacy data centers and others, such as mobile banking or payment processing, are operated from cloud environments, providing the benefits of speed and scalability.

The shift to a hybrid approach was itself an evolution. First, financial institutions placed non-essential applications in a single public cloud provider to test its capabilities. Some have pursued deployments across multiple cloud providers to handle different tasks, while maintaining robust on-premises backend systems, both to partner with public cloud deployments and to power core services.

While a hybrid approach using one or two separate cloud providers works for now, the next logical step (taken by many fintech startups) is to fully embrace the cloud and eventually a multi-cloud approach that will completely away from the on-site infrastructure. .

Solving Cloud Concentration Risks

Recent outages at major public cloud providers remind us that no matter how many data centers they operate, single cloud providers remain vulnerable to weaknesses created by the complexity of their own network and the interconnectivity between sites. Disruptions vary in severity, but when an institution relies on a single cloud service provider, it exposes its business to the risk of potential service shocks from that organization’s technical dependencies.

By distributing data across multiple clouds, they can improve high availability and application resiliency without sacrificing latency. This allows financial services companies to distribute their data in a single cluster across Azure, AWS, and Google Cloud while distributing data across multiple regions available on these CSPs.

This is especially relevant for financial services companies that need to comply with data sovereignty requirements, but have limited deployment options due to poor regional coverage on their primary cloud provider. In some cases, only one region of the country is available, which makes users particularly vulnerable to cloud service interruptions.

Go beyond regulations

Beyond the looming regulatory issues, there are a number of practical business and technology limitations of a one-size-fits-all cloud approach that the industry must address to truly future-proof its infrastructure.

  • Geographic Constraints: Not all cloud service providers operate in all business regions, and the availability of local cloud solutions is becoming increasingly important as more countries adopt sovereignty and residency laws. data designed to govern how data is collected, stored and used locally.

  • Vendor lock-in: There is a business risk in placing all of an institution’s bets on a single cloud vendor. The greater the integration with a single cloud provider, the more difficult it becomes to negotiate the cost of cloud services or consider switching to another provider.

  • Security consistency: While CSPs invest heavily in security features, in the event of an infrastructure collapse or cyberattack, a multi-cloud environment can give organizations the flexibility to switch vendors and back up and protect their data.

  • Feature limitations: Cloud service providers develop new features asynchronously. Some excel in specific areas of functionality and constantly innovate, while others focus on a different set of core capabilities. By limiting deployments to a single cloud service provider, institutions limit their access to the best features of the cloud.

With increasing pressure from regulators at the same time as consumers increasingly demand premium product experiences from financial services institutions, multi-cloud mining can satisfy both. It provides redundancy, security, and peace of mind because the infrastructure isn’t solely dependent on a CSP, while providing the functionality and space to innovate on the best the industry has to offer. Now is the time to embrace multicloud.

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JD Power Poll: Direct Banks Gain Popularity Through Customer Service https://bellowingark.org/jd-power-poll-direct-banks-gain-popularity-through-customer-service/ Thu, 12 May 2022 18:27:55 +0000 https://bellowingark.org/jd-power-poll-direct-banks-gain-popularity-through-customer-service/ Direct banks – digital branchless alternatives to traditional retail banking – continue to grow in popularity, based in large part on “superior customer service”, according to the JD Power U.S. Direct Banking Satisfaction Survey Results published today. A majority of checking and savings customers (88%) said it was easy to do business with their direct […]]]>

Direct banks – digital branchless alternatives to traditional retail banking – continue to grow in popularity, based in large part on “superior customer service”, according to the JD Power U.S. Direct Banking Satisfaction Survey Results published today.

A majority of checking and savings customers (88%) said it was easy to do business with their direct bank, and 85% said their accounts had no hidden fees. Only 6% of checking and savings customers say their direct bank does not put the customer’s interests first. Among checking and savings customers, 59% say they have never had a problem or complaint with their direct bank. Of customers who had an issue/complaint in the past 12 months, 83% said it was convenient to contact customer service and 88% said their most recent issue was resolved.

“Today, 27% of banking customers in America use online banking alone,” said Paul McAdam, senior director of banking intelligence and payments at JD Power. “As much of our lives continue to shift to digital providers, direct banks have been in a unique position to gain market share and mind share by offering round-the-clock access, as well as products which have attractive fee structures and interest rates”.

Neobanks, online-only banking service providers without federal banking charters, continue to win customers who tend to be younger, less financially secure and more sensitive to bank fees, the survey found. Neobanks lag direct banks in most key factors assessed in the study, but show strong performance in areas such as personalization and innovative technologies.

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How and why Fin-Tech Banks have connected with customers so far………. https://bellowingark.org/how-and-why-fin-tech-banks-have-connected-with-customers-so-far/ Thu, 12 May 2022 16:23:02 +0000 https://bellowingark.org/how-and-why-fin-tech-banks-have-connected-with-customers-so-far/ Welcome to my very first personal blog as a Chief Operating Officer of Moneemint. Firstly, I couldn’t be more proud to have joined such a talented and ambitious team of people, fully committed to building THE most ethical and inclusive bank in the UK. Having personally made the leadership transition from one of the CMA9s […]]]>

Welcome to my very first personal blog as a Chief Operating Officer of Moneemint.

Firstly, I couldn’t be more proud to have joined such a talented and ambitious team of people, fully committed to building THE most ethical and inclusive bank in the UK.

Having personally made the leadership transition from one of the CMA9s (CMA9 being the 9 largest banks in the UK) to the fin-tech start-up world with Moneemint, you can guess I had so many questions about leadership that were swirling around in my mind. One of the main ones being:

How and why have Fin-tech banks (neobanks) so far established an emotional connection with their customers?

Although this is a complex subject influenced of course by personal choice, the following elements certainly played their part:

A lack of trust in traditional banks

Surveys show that around 14 years later, many customers in the UK say our traditional banks have not faced sanctions tough enough for their role in the 2008 financial crisis. third of adults in the UK still do not trust banks to work in the best interests of society.

The cost of service – Face to face in a digital world

We have all seen an increasing number of branch closures over the last 3 years in particular, which continue into 2022. UK commercial banks continue to struggle strategically with the essential need to change their traditional ways of working, while trying to please all customers. in how they want to be served. Once you have a recognized face-to-face operating rhythm as a huge organization, it is extremely difficult to deviate from it given the inevitable political and economic obligations, as well as the moral expectation of banks to stay in the UK main street.

Serving future generations: Gen Y, Gen Z and Gen Alpha (15 years)

If a business tries to live in the past, it tends to fail. Banks are no exception. Meeting the needs of the above and future generations is the job of current and future banking leaders and this is where neobanks steal a march and will continue to gain market share on the CMA9

Make it really effortless – I know we’re British, but who wants to wait in line?

Our lives are quite hard and busy. We are now also facing a cost of living crisis, soaring energy prices and £80 to refuel an average car. The demand to make things truly effortless and “on the go” doesn’t go away, which is only enhanced by “saving me travel and money” and, in turn, helping to improve well- being and work/life balance.

“I only left my cell phone at home” – What a nightmare… are you ok?

Need I say more. THE most powerful technology ever designed; we simply cannot live without! The key to why UK neobanks and indeed new digital platform players will continue to disrupt the UK banking scene for years to come and add enormous value to society and our UK economic growth.

So these are just some of the reasons why Fin-Tech banks attracted record investment of $11.6 billion in 2021 alone, nearly half of all investment in Europe!! But are they emotionally connected at the moment?

There remains much more than customers truly deserve. For fintechs to truly connect emotionally with customers in the future, they need to:

  • Make things authentically personal for ALL customers, respecting and valuing their beliefs (Know Me)
  • Connect emotionally deeper with customers (get me)
  • Add trust value (Remember Me)
  • Believe in their own purpose, vision and values… and live them, always!
  • Be ethically and socially responsible
  • Have a clear USP compared to other UK Fin-Techs and banks
  • Learn from past banking mistakes

……Watch this place!

Kevin Guy

Chief Operating Officer, Monemint

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How neo-banks are changing the traditional banking ecosystem https://bellowingark.org/how-neo-banks-are-changing-the-traditional-banking-ecosystem/ Tue, 10 May 2022 11:34:24 +0000 https://bellowingark.org/how-neo-banks-are-changing-the-traditional-banking-ecosystem/ Just think you need to make RTGS payment or need bank statement for visa application processing. You have no choice but to take half a day off from your job. And when you walk up to the branch, some guy there will try to sell you everything, like the ULIP plan, which isn’t even in […]]]>

Just think you need to make RTGS payment or need bank statement for visa application processing. You have no choice but to take half a day off from your job. And when you walk up to the branch, some guy there will try to sell you everything, like the ULIP plan, which isn’t even in your best interest. This is the state of Indian banks, no matter how savvy and customer loving they claim to be. And don’t even ask me about spam calls for personal loans and credit card offers from your bank, even if you already have credit cards from the same institution.

The banking sector around the world, including in India, has long been considered archaic and out of touch with consumer needs. More than 50 digital banks have sprung up around the world in the past five years. Nubank in Brazil took nearly 25% market share in Brazil in the space of seven years, in a country where the banking structure was similar to India in 2014. The top 5 banks controlled 80% market share in 2014 in Brazil. Globally, regulators have proactively supported these innovations not only in the more developed markets of the West, but even in neighboring Asian countries, such as Singapore, Malaysia, Indonesia, the Philippines and others.

Although it is still early days, the numbers in India are holding up so far. According to Deloitte’s TMT 2022 Global Outlook, India had 1.2 billion mobile subscribers in 2021, of which around 750 million were smartphone users. It is on track to become the second-largest smartphone maker in the next five years. These consumers consume on average more than 17 GB of data each month, thanks to the penetration of 4G by Airtel and Jio.

Separately, transactions made using the Unified Payments Interface reached a new high of over 5 billion transactions in January 2022, surpassing the previous record set in October when the value of UPI transactions crossed for the first time $100 billion.

FinTech startups will also leverage two of their greatest strengths, the ability to innovate and access top tier tech talent, to deliver curated banking experiences that aim to meet all customer expectations, without weighing them down. additional or hidden costs or poor customer service. . In short, it’s smart and seamless banking on your mobile phone.

But there is a huge opportunity here for upheaval and overturning the rules of the game as they are now. Several pseudo-digital banking service providers have sprung up trying to bring greater transparency, additional consumer/SME benefits – essentially creating a customer-centric banking experience, providing current accounts to SMEs where traditional banks take weeks to open a simple bank account, while reaching consumers/SMEs, across demographics, in one of the most underbanked and underpenetrated banking landscapes in the world. In the digital world, customers deserve the right to equal service rather than service based on their bank balances.

Digital banks have a huge opportunity, leveraging increased mobile penetration, video KYC, the ability to assess SME credit-based cash flows, and the continued massive acceptance of digital payments, to achieve the stated goals of greater financial inclusion.

However, all of this must come together by keeping pace with policy makers and regulators. While RBI has played the crucial role of protecting India’s banking system and consumer interests, the need of the hour is to be more forward-looking with increasing digital adoption by consumers and MSMEs. This cannot be seen as a fight between traditional banks and new era focused fintech companies, but should be viewed more as a collaborative effort, designed to help the Indian consumer and SME’s, while placing the at the Forefront and Center of the Global FinTech Universe.

The RBI needs to consider how digital banking can be leveraged to provide better service, low cost banking services to the public and easy access to credit in general. Existing banks are trying hard in their endeavors but are struggling due to the legacy technology stack and talent mindset. Moreover, these entities always try to charge the cost of branches to digital customers even when these customers have never visited the branches. Most of these savvy banks claim over 250 APIs that never actually work.

Renovation is not the right way to think if one is to bring about real change. There is clearly a need to enable a new set of players to redefine banking experiences rather than so-called neo-banks trying to make a difference to customers with their hands tied at the mercy of traditional banks. Access to credit by SMEs has been a big challenge because MSMEs do not have durable assets to pledge each time they seek credit. Digital footprints are the only assets Indian MSMEs have. Digital banks can clearly leverage this and provide credit seamlessly.

In conclusion, it is time for government and regulators to rethink how India can become competitive in digital banking. So far, India has a clear lead thanks to UPI, but other developing countries are challenging the status quo. And if Indian policymakers play well, there is an opportunity for Indian digital banks to revolutionize the way banking can and will be undertaken in India.



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The opinions expressed above are those of the author.



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New Mexico will offer free child care to most residents https://bellowingark.org/new-mexico-will-offer-free-child-care-to-most-residents/ Fri, 06 May 2022 10:04:03 +0000 https://bellowingark.org/new-mexico-will-offer-free-child-care-to-most-residents/ New Mexico will offer free child care to most residents New Mexico will eliminate the cost of child care for most families through June 2023, Governor Michelle Lujan Grisham announced in a press release. This initiative will apply to families earning up to 400% of the federal poverty level, expanding affordable child care to more […]]]>

New Mexico will offer free child care to most residents

New Mexico will eliminate the cost of child care for most families through June 2023, Governor Michelle Lujan Grisham announced in a press release.

This initiative will apply to families earning up to 400% of the federal poverty level, expanding affordable child care to more than 30,000 families.

“My 4-year-old son’s child care co-pay waiver has been a huge financial help to our family,” said Irlanda Hernandez, an educator and mother from Albuquerque. “As a second-grade bilingual teacher with a background in early childhood education, I know that quality early childhood education can have a huge impact on a child’s life, and this extension of the co-payment waiver for childcare makes quality early childhood education more accessible to families like mine.

Child care workers are also being helped through a new stipend program that will pay up to $2,000 per semester to professionals enrolled in an early childhood program at a local college or university. Employees will also have the opportunity to pitch grants on how best to expand access to childcare services to local communities that need it most.

Check if you are eligible for childcare assistance here.

Wins and losses: Long Island Starbucks to unionize as Amazon workers vote against it

Starbucks workers across the country continued their campaign for stronger worker protections after baristas from Long Island voted 19 to 8 in favor of unionization.

Their victory comes during a time of distress for the coffee chain, when attempts to dissuade workers from unions by interim CEO Howard Schultz have been rather unsuccessful, as Next City previously reported. The company, however, retaliated against unionized stores, pushing Delaware workers hit. Employee grievances focus exclusively on increased wages, expanded training and other benefits for non-union stores.

Amazon workers in Shakopee, Minnesota are also striking. Employees left work last Friday to demand a $3/hr wage increase and the ability to make time for the celebration of Eid, a holiday that marks the end of Muslims’ 30-day fasting period.

And while workers at a larger Staten Island plant became the first Amazon warehouse to unionize, employees at a smaller site voted against unionizing, City & State New York reports. Labor organizers have suggested this was largely due to Amazon’s extensive anti-union propaganda and are taking the moment head on.

“Workers are paying attention now, which is wonderful,” ALU chief organizer Christian Smalls told City & State last month. “We have people here in all three states – New York, New Jersey and Connecticut – who want to start ALU chapters. So we are absolutely going to help people as much as we can. We hope it will be nationwide.

Abortion is an economic issue

A leaked draft opinion by Supreme Court Justice Samuel Alito that would overturn Roe v. Wade also comments that pregnant women don’t need access to abortion to be financially stable, the 19th News reports.

Alito argues that because pregnant women have access to guaranteed medical leave “in many cases” and can use insurance and government assistance to cover medical costs, the economic effect of abortion is insignificant.

But that’s not the reality for many Americans.

As the 19th points out, 95% of workers have access to unpaid family leave, and only the top 10% of American earners have access to anything resembling guaranteed leave.

The United States is also one of seven countries without a national paid leave policy, and births can cost between $4,300 and $5,200, according to a 2015 study of more than 600,000 women.

Julie Kashen, senior fellow and director for women’s economic justice at the Century Foundation, said Alito’s argument had no merit. “Even if we had access to paid family leave, childcare and insurance coverage for pregnancy and childbirth – even if we had all those things in place, which we don’t , the need for the right to abortion continues to exist.”

Solcyre (Sol) Burga was an Emma Bowen Foundation Fellow with Next City for the summer of 2021. Burga is completing her degree in political science and journalism at Rutgers University, intending to graduate in May 2022. As a Newark native and immigrant, she hopes to elevate the voices of underrepresented communities in her work.

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